Determinants of Elasticity Assignment Example | Topics and Well Written Essays - 250 words

Determinants of Elasticity - Assignment Example At the other hand, the focus of this document points out towards the growth in the prices of mattresses, sofas and beds, throughout the world. Rest is one of the basic human needs for sustainable existence (Mei-Se, Shu-Jung, & Hung-Ta, 2009), therefore people are forced to cope with rising prices of this important need, through forgoing other important desires. Mattresses and luxury sofa sets were luxuries during the course of past two decades, but in this modern era, they transformed into necessities for families to maintain their status symbol. At the same time, there is no suitable substitute available for them; along with this, there is a growing social pressure to acquire good to excellent quality sofa sets and mattresses to keep up with the changing trends. Therefore, it is wise to imply that, the demand of mattresses and other similar social necessities is not affected by the change in price largely. In parallel, it is recommended to the governments to provide firms producing these items with subsidies in order to, stabilize prices of their products, so that people can fulfill other desires as well. This paper focused on analyzing the price elasticity of necessities of human life, and painfully noticed that despite of their increasing prices, people are purchasing them. Therefore, governmental intervention is recommended in order to; control inflating price of mattresses and other similar